Options stop-loss is tricky: Theta decays while you wait. Use a combination — max premium risk (e.g. 2x entry), filter breach (VIX z>2), and DTE floor. Hard stops on underlying also help for spreads. Avoid tight stops that Theta noise hits.
The framework sizes by premium risk, so the stop is implicitly the max loss. Add a regime exit (filter) rather than a fixed tick stop. Discipline over precision.
Q: Options stop tricky why?
A: Theta decays while you wait; noise whips tight stops.
Q: Best stop?
A: Max premium risk + filter breach + DTE floor.
Q: Underlying stop?
A: Helps for spreads; avoid tick stops on premium.
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By Shakti Tiwari · Options AI research pillar. NISM XII certified. Educational only, not investment advice; verify before acting.